A24 Nears Sale Decisions Amid Blockbuster Budgets and Record Profits

Independent studio A24 has wrapped production on a movie adaptation of the video game Elden Ring. The action epic carries a $200 million price tag, stars Kit Connor, and is directed by Alex Garland.

Profits and Growth

This year stands as A24's most profitable ever due to hits like the Gen Z horror breakout Backrooms and the Elizabeth Holmes documentary You Can See Everything. These titles pushed A24 past $500 million at the domestic box office for the first time. The studio also boasts a growing TV division that produces shows like Peacock's Crystal Lake and HBO's Neighbors, alongside a $3.5 billion valuation from a mid-2024 fundraise led by Josh Kushner's Thrive Capital.

Expansion and Challenges

Founders David Fenkel and Daniel Katz have previously turned down acquisition offers from buyers like Apple and Sony to protect the studio's cool factor. However, rival executives question if the company's valuation matches market realities, pointing out that brands often fail to survive acquisitions. A24 has also experimented with big-budget films and acquired rights to The Texas Chainsaw Massacre, though past bets like Ari Aster's Eddington and Dwayne Johnson's The Smashing Machine stumbled at the box office.

Context

Studio acquisitions in the entertainment industry frequently spark debate over whether corporate buyers can preserve the creative independence that made smaller brands popular. As independent production houses scale up to compete with major studios, balancing massive budgets with niche artistic appeal remains a central challenge.